LegalShield Can Arbitrate Proposed Class Case From Ex-Associate

A former “associate” of Pre-Paid Legal Services Inc. must arbitrate his claims on behalf of a proposed class that the company misclassifies its associates as independent contractors rather than employees.

Judge Rita F. Lin, of the US District Court for the Northern District of California, on Thursday granted the motion from the legal advice and services company, better known as LegalShield, to enforce the binding arbitration clause in its associate agreement, ruling that the company showed Wesley Hunter had agreed to arbitration.

“Associates” at LegalShield manage the marketing and selling of its memberships to customers. The company is structured as ...